You are evaluating a product for your company. You estimate the sales price of product to be $375 per unit and sales volume to be 500 units in year 1; 1,000 units in year 2; and 200 units in year 3. The project has a 3-year life. Variable costs amount to $200 per unit and fixed costs are $100,000 per year. The project requires an initial investment of $175,000 in assets which will be depreciated straight-line to zero over the 3-year project life. The actual market value of these assets at the end of year 3 is expected to be $20,000. NWC requirements at the beginning of each year will be approximately 25% of the projected sales during the coming year. The tax rate is 34% and the required return on the project is 10%. What will the year 2 free cash flow for this project be?

	$8,933
	$22,458
	$69,333
	$144,333